The news is pretty depressing. The economy is slowing, the country is bitterly partisan, and the market has been down several days in a row. The VIX reflects that and is in overbought territory where it could sell off. VIX goes down stocks generally go up.
The first of the month usually brings in new money. If it did this month, they were slapped hard.
S&P 500 is at 200 day moving average and in oversold territory. I’d be nervous if I was short
Debt ceiling conclusion will lift some of the cloud hanging over equities.
Triple AAA downgrade more bluster than blunder. I mean does it really matter? Interest rates have continued to fall during both Moody’s and S&P’s comments. Besides the rating agencies tend to follow rates not lead them.
Unlike the PIGS, the U.S. is attempting to right its fiscal house before the market tells it needs to. This is healthy. This is democracy at work. We need to have a national debate about our debt.
Markets rarely retreat in the third year of a Presidential term. At least this hasn’t happened since 1939. This is a pretty weak reason though IMHO
Stocks do BEST in years when government spending falls according to JPM.
Stocks are the only ball game in town. Well there is gold. And that’s worked well since they turned it into a stock GLD.
